Time Warner Cable 2014 Annual Report Download - page 123

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TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Noncontrolling Interests
During the fourth quarter of 2012, TWC acquired the remaining 45.81% noncontrolling interest in Erie
Telecommunications, Inc. (“Erie”) for $32 million and, as a result, TWC owns 100% of Erie. This acquisition was
recorded as an equity transaction and is reflected as a financing activity in the consolidated statement of cash flows. As a
result, the carrying balance of this noncontrolling interest of $5 million was eliminated, and the remaining $27 million,
representing the difference between the purchase price and carrying balance, was recorded as a reduction to additional
paid-in capital.
Interest Expense, Net
Interest expense, net, for the years ended December 31, 2014, 2013 and 2012 consisted of the following (in millions):
Year Ended December 31,
2014 2013 2012
Interest expense .............................................. $ (1,419) $ (1,555) $ (1,614)
Interest income ............................................... — 3 8
Interest expense, net ........................................... $ (1,419) $ (1,552) $ (1,606)
Other Income, Net
Other income, net, for the years ended December 31, 2014, 2013 and 2012 consisted of the following (in millions):
Year Ended December 31,
2014 2013 2012
Income from equity-method investments, net(a) ...................... $ 33 $ 19 $ 454
Gain (loss) on equity award reimbursement obligation to
Time Warner ............................................... 1 (10) (9)
Gain on sale of investment in Clearwire ........................... — — 64
Other investment losses(b) ....................................... — — (12)
Other ....................................................... 1 2 —
Other income, net ............................................. $ 35 $ 11 $ 497
(a) Income from equity-method investments, net, in 2012 primarily consists of a pretax gain of $430 million associated with SpectrumCo’s sale of its
advanced wireless spectrum licenses to Verizon Wireless (refer to Note 7 for further details).
(b) Other investment losses in 2012 represents an impairment of the Company’s investment in Canoe Ventures LLC (“Canoe”), an equity-method
investee. The impairment was recognized as a result of Canoe’s announcement during the first quarter of 2012 of a restructuring that significantly
curtailed its operations.
115